Issues facing the development of the cable (fiber optic cable) industry

Although the current situation facing the optical fiber and cable industry is good, from the perspective of development, it is not without worry. This year's high market demand has stimulated expansion of fiber optic cable manufacturers, and it is expected that new capacity will reach 10 million core kilometers or more in 2009. As the entry barrier is low and production capacity continues to expand rapidly, it is difficult for the optical fiber and cable industry to avoid a new round of overcapacity. With the large increase in production capacity, there will be a risk of falling product prices next year. To this end, the development of the fiber optic cable industry should focus on the following aspects:

First, strengthen independent innovation capabilities. In the R&D, production, core technologies, and key links of optical fiber and optical cables, increased investment has been made to strive to improve product technology and production technology levels, and strive to achieve breakthroughs in key areas of optical fiber and cable production to form a group of products with independent intellectual property rights. Especially in the area of ​​preforms, although technological breakthroughs have been made, it is still necessary to speed up the mass production process.

Second, increase industry consolidation, establish a brand, and become bigger and stronger. At present, China's optical fiber and cable industry is big and not strong, and the product differentiation is not obvious. Leading companies should strengthen their awareness of product quality and safety, and use their own strength to improve the industrial chain construction, eliminate outdated production capacity and production processes, start industry consolidation and market restructuring with market measures, and lay a solid foundation for the sustainable and healthy development of the industry.

Third, the government authorities should focus on creating a fair and reasonable market competition environment. The competent government department should pay close attention to the core interests of Chinese enterprises in domestic and foreign markets, and play a role in including market access, anti-dumping, etc. to ensure that Chinese enterprises can receive fair treatment in market competition. In addition, in view of the emergence of overcapacity and disorderly competition in some places, it is imperative to strengthen guidance at the national level and plan the overall development of the optical fiber and cable industry.

Since last year, the optical fiber and cable market has continued to take a good step, and the operating income and benefits of fiber optic cable companies have increased significantly. This is the result of the rise in both volume and price of optical fiber and cable markets this year. Benefited from the promotion of operators' 3G telecom investment, FTTH propulsion, national power grid construction, rural power grid renovation and new energy projects, the optical fiber and cable market is in short supply. The price of optical fiber also rose from 72 yuan per kilometre in 2008 to 2009. About 86 yuan per kilometer. Moreover, predictions indicate that the demand for domestic fiber optic cable will maintain a growth rate of more than 20% in the next three years.